Cheaper Tesla model may be here by 2016

Updated 11:01 am, Thursday, June 6, 2013

Photo: Patrick T. Fallon

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A Model S sedan charges up during the October grand opening of a Tesla supercharger station in Lebec,
Calif. Tesla's CEO said Thursday that 80 percent of the U.S. would have access to such stations by 2014.

A Model S sedan charges up during the October grand opening of a Tesla supercharger station in Lebec,
Calif. Tesla's CEO said Thursday that 80 percent of the U.S. would have access to such stations by 2014.

Photo: Patrick T. Fallon

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Tesla Motors, maker of the Model S electric sedan, said it has paid back its $465 million federal loan.

Tesla Motors, maker of the Model S electric sedan, said it has paid back its $465 million federal loan.

Photo: JANE TYSKA, MBR

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Tesla's rival, the $100,000 Fisker Karma, developed a reputation for glitches.

Tesla's rival, the $100,000 Fisker Karma, developed a reputation for glitches.

Photo: Damian Dovarganes, STF

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Tesla's Model S, introduced last summer, has received mostly strong reviews for performance, comfort and quality. It's priced from $70,000 to $95,000.

Tesla's Model S, introduced last summer, has received mostly strong reviews for performance, comfort and quality. It's priced from $70,000 to $95,000.

Photo: JANE TYSKA, MBR

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The Tesla Gallery in the Galleria is shown Thursday, Oct. 20, 2011, in Houston. Electric cars made by Tesla are the main attractions in the gallery. ( Brett Coomer / Houston Chronicle )

The Tesla Gallery in the Galleria is shown Thursday, Oct. 20, 2011, in Houston. Electric cars made by Tesla are the main attractions in the gallery. ( Brett Coomer / Houston Chronicle )

A Tesla Model S is displayed last week after winning the 2013 World Green Car of the Year award at the New York Auto Show. Tesla Motors will begin its first lease-style financing program for the electric sports sedan. less

A Tesla Model S is displayed last week after winning the 2013 World Green Car of the Year award at the New York Auto Show. Tesla Motors will begin its first lease-style financing program for the electric sports ... more

Photo: John Moore, Staff

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Elon Musk, billionaire and chief executive officer of Tesla Motors Inc., speaks to the media on the first day of the 83rd Geneva International Motor Show in Geneva, Switzerland, on Tuesday, March 5, 2013. This year's show opens to the public on Mar. 7, and is set to feature more than 100 product premiers from the world's automobile manufacturers. Photographer: Valentin Flauraud/Bloomberg *** Local Caption *** Elon Musk less

Elon Musk, billionaire and chief executive officer of Tesla Motors Inc., speaks to the media on the first day of the 83rd Geneva International Motor Show in Geneva, Switzerland, on Tuesday, March 5, 2013. This ... more

Photo: Valentin Flauraud

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Tesla showed off its Model X at the Detroit auto show. The crossover blends elements of an SUV with the benefits of a minivan. The automaker hopes to begin delivering the SUV in 2014. (Photo: Inhabitat, Flickr)

Tesla showed off its Model X at the Detroit auto show. The crossover blends elements of an SUV with the benefits of a minivan. The automaker hopes to begin delivering the SUV in 2014. (Photo: Inhabitat,

Tesla showed off its Model X at the Detroit auto show. The crossover blends elements of an SUV with the benefits of a minivan. The automaker hopes to begin delivering the SUV in 2014. (Photo: Inhabitat, Flickr)

Tesla showed off its Model X at the Detroit auto show. The crossover blends elements of an SUV with the benefits of a minivan. The automaker hopes to begin delivering the SUV in 2014. (Photo: Inhabitat,

Tesla showed off its Model X at the Detroit auto show. The crossover blends elements of an SUV with the benefits of a minivan. The automaker hopes to begin delivering the SUV in 2014. (Photo: Inhabitat, Flickr)

Tesla showed off its Model X at the Detroit auto show. The crossover blends elements of an SUV with the benefits of a minivan. The automaker hopes to begin delivering the SUV in 2014. (Photo: Inhabitat,

Tesla showed off its Model X at the Detroit auto show. The crossover blends elements of an SUV with the benefits of a minivan. The automaker hopes to begin delivering the SUV in 2014. (Photo: Inhabitat, Flickr)

Tesla showed off its Model X at the Detroit auto show. The crossover blends elements of an SUV with the benefits of a minivan. The automaker hopes to begin delivering the SUV in 2014. (Photo: Inhabitat,

Tesla showed off its Model X at the Detroit auto show. The crossover blends elements of an SUV with the benefits of a minivan. The automaker hopes to begin delivering the SUV in 2014. (Photo: Inhabitat, Flickr)

Tesla showed off its Model X at the Detroit auto show. The crossover blends elements of an SUV with the benefits of a minivan. The automaker hopes to begin delivering the SUV in 2014. (Photo: Inhabitat,

Tesla showed off its Model X at the Detroit auto show. The crossover blends elements of an SUV with the benefits of a minivan. The automaker hopes to begin delivering the SUV in 2014. (Photo: Inhabitat, Flickr)

Tesla showed off its Model X at the Detroit auto show. The crossover blends elements of an SUV with the benefits of a minivan. The automaker hopes to begin delivering the SUV in 2014. (Photo: Inhabitat,

Tesla showed off its Model X at the Detroit auto show. The crossover blends elements of an SUV with the benefits of a minivan. The automaker hopes to begin delivering the SUV in 2014. (Photo: Inhabitat, Flickr)

Tesla showed off its Model X at the Detroit auto show. The crossover blends elements of an SUV with the benefits of a minivan. The automaker hopes to begin delivering the SUV in 2014. (Photo: Inhabitat, Flickr)

Photo: Inhabitat, Flickr

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TESLA MODEL X: The electric car brand has made a name for itself over the past year with its sport sedans. The company is now expand its lineup with its Model X. The crossover SUV has plenty of unique features.

TESLA MODEL X: The electric car brand has made a name for itself over the past year with its sport sedans. The company is now expand its lineup with its Model X. The crossover SUV has plenty of unique features.

The dash display details the power situation. Charging stations for Tesla owners are being built across the United States.

The dash display details the power situation. Charging stations for Tesla owners are being built across the United States.

Photo: Melissa Phillip, Staff

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DETROIT, MI, - JANUARY 10: The Tesla Model S Signature is shown during a media preview day at the 2012 North American International Auto Show January 10, 2012 in Detroit, Michigan. The NAIAS opens to the public January 14th and continues through January 22nd. (Photo by Bill Pugliano/Getty Images) (Bill Pugliano / Getty Images) less

DETROIT, MI, - JANUARY 10: The Tesla Model S Signature is shown during a media preview day at the 2012 North American International Auto Show January 10, 2012 in Detroit, Michigan. The NAIAS opens to the public ... more

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A completed Tesla Model S sedan sits at Tesla's factory in Fremont, Calif., Wednesday, June 13, 2012. On June 22, Tesla Motors will begin delivering its all-electric Model S luxury sedan. It is only the second car ever produced by Tesla, and first to be built at Tesla's own factory. (Erik Verduzco / Special to The Chronicle) less

A completed Tesla Model S sedan sits at Tesla's factory in Fremont, Calif., Wednesday, June 13, 2012. On June 22, Tesla Motors will begin delivering its all-electric Model S luxury sedan. It is only the second ... more

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A completed Tesla Model S sedan sits at the end of the assembly line at Tesla's factory in Fremont, Calif., Wednesday, June 13, 2012. On June 22, Tesla Motors will begin delivering its all-electric Model S luxury sedan. It is only the second car ever produced by Tesla, and first to be built at Tesla's own factory. (Erik Verduzco / Special to The Chronicle) less

A completed Tesla Model S sedan sits at the end of the assembly line at Tesla's factory in Fremont, Calif., Wednesday, June 13, 2012. On June 22, Tesla Motors will begin delivering its all-electric Model S ... more

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Tesla Motors Inc.'s Model X vehicle is unveiled at Tesla's design studio in Hawthorne, California, U.S., on Thursday, Feb. 9, 2012. The Model X, touted by Tesla as faster than Porsche AG's 911 sports car and roomier than Audi AG's Q7 SUV, will be built in 2013 at the company's Fremont, California, plant that starts making the Model S this year. Photographer: Tim Rue/Bloomberg (Tim Rue / Bloomberg) less

Tesla will remove a major roadblock to buying an electric car by introducing a cheaper model in the next three years.

CEO Elon Musk said the company plans to offer a third generation vehicle by 2016, and the unnamed model will cost half as much as the Model S and have a range of at least 200 miles per charge, according to Automotive News.

The Model S, which was recently named Motor Trend Car of the Year, is priced at $62,400 after the $7,500 federal tax credit. Musk's price point for the third generation car would be in the same range as the Nissan Leaf, but with more driving range.

Musk didn't offer too many details about the new model at the company's shareholders' meeting this week. His only description was that it would have a "family resemblance" and may come equipped with "some autopilot or self-driving elements."